June 20, 2011

 

Saudi Arabia purchases 360,000 tonnes of wheat from US, Europe

 

 

Saudi Arabia's state grains buyer has purchased 360,000 tonnes of wheat from the US and Europe as it looks to build strategic reserves, the country's press agency reported on Sunday (Jun 19).

 

The wheat will arrive in the country on six ships during September and October, with three going to Jeddah Islamic port and three to King Abdulaziz port in Dammam, SPA said.

 

No pricing details were given.                                                                                           

 

The Grains Silos and Flour Mills Organisation (GSFMO) issued a tender on Wednesday (Jun 15) to buy 330,000 tonnes of wheat in six 55,000 tonnes consignments for arrival between Sept 10-20, Oct 1-10, and Oct 20-30.

 

Saudi Arabia expects about two million tonnes of wheat imports this year, unchanged from 2010, and aims to double its reserves to one year's consumption by 2014, its Minister of Agriculture said last week.

 

The world's top oil exporter, which has emerged as a major buyer of wheat, wants to build reserves of basic commodities such as wheat, rice, oils, and sugar to protect itself against the impact of a spike in global food prices, and to support its rapidly growing population.

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